First and foremost thing you should remember that there is no shortcut to success,
otherwise every investors would be an millionaire, practice several
elements from different strategies along with common sense and utilize
yours instinct, which will help you enlighten your path towards the
success. The thing you have to do is to scrutinize all the data like;
balance sheet, debt ratios, cash flow, market share, variable turnover,
variable expenses, dividend yield etc… different types of stock requires
different investing strategies.
- The first and very basic rule of success in share market is to buy low and sell high. You should buy stock that are on its downward trend and you foresee that it will rise in future, while doing this you should remember that you will be holding on to stock in the long- term period, so knowing market trends and that factors what effect them Is very important.
- Short selling technique, to make most of the money from share trading you must be ready and also willing to sell shares “short”. It is the selling technique of shares that isn’t owned by seller, but that is promised to be delivered.
- Always have a defined plane and always stick to it, take your time after each trading day to analyze the action of the market, watch it carefully and consider the fundamentals and techniques and then plane what you will do on the next trading day weather you will buy or hold or sell.
- “Stretch your legs according to your quilt” trade only with the fund you can afford to lose, the simple technique in stock trading is if you can’t afford to lose whatever money you have you may find it impossible to win.
- Never trade impulsively; this is the biggest weakness of traders that they do not have patience while trading. Impulsive behavior can because you lose the larger amount of money. It invokes your emotions of fear and also greed your inability to recognize which makes you bad trader.
- Share trading is directly related to the economy. If a global economy is strong you will have better chances that your shares will go up in future and if there are issue with economy you can see that your share can do down, this will help you determine whether you should hold onto your share or not.
At last experience plays the major role in share trading; there are lot of advisory firm who provides to with effective share trading tips
which comes to you via analyst and from there years of experience into
studying the movement of market as well predicting it. This is excellent
way to grand tips and gets the most comprehensive stock investment tips.
Source: {www.mmfsolutions.sg/blog/latest-2015-share-trading-tips-to-become-successful-trader/}
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